Poundland posts doubled loss as sale looms
The UK discount chain posted a near‑doubling of its loss and is preparing for a new ownership auction.
Poundland announced a pre‑tax loss of £85.2m for the year to September 2025, almost twice the £45.4m recorded the previous year. The loss came alongside a 12% fall in revenue to £1.5bn and a shrink in gross margin to 31.4%.
Financial results and restructuring
The retailer blamed the widening deficit on "difficult trading conditions" and a "significant programme of restructuring". It used 2025 as a "reset moment", shedding 11% of its workforce, the headcount fell to 14,417, and closing 22% of its stores, leaving 642 sites open in January 2026 compared with 820 a year earlier.
In addition, the accounts were adjusted by £61.1m to correct an accounting error, though the correction did not affect the overall profit figure.
Sale process and future outlook
Last July, Gordon Brothers bought the chain from Warsaw‑listed Pepco Group for a nominal £1. The investment firm, based in Boston, is now preparing an auction of the business, appointing Alvarez & Marsal as advisers.
“Re‑building trust with customers takes time, but we’re making very significant progress as we deliver the ranges and price simplicity they demand of us,” said Barry Williams, managing director of Poundland.
Despite the setbacks, the company says it has regained momentum, re‑introducing its iconic £1 price point on half of grocery items and planning to open its first new store in two years in West Thurrock, Essex later this week.
Analysts will watch the upcoming sale closely, as the discount sector remains volatile and any new owner will need to navigate a market where rivals such as Morrisons are also grappling with debt and shifting consumer habits.
